Feb 20
Why should financial values be introduced to children early?
Money is omnipresent and yet it is the least spoken about with our kids. Financial literacy is as important as Math and Sciences that kids learn at schools. Young kids are exposed to digital transactions but they are too young to grasp the concept of these digital transactions being real money as they don’t get to see huge amounts of cash exchanged hands
Habits are set into practice as early as the age of 7 and are extremely hard to change once set into motion. Hence, exposing kids to financial literacy at a young age embeds these good money management habits into their daily lives.
Financial literacy is not just about teaching them about different currencies and the importance of saving. It is about equipping kids with adequate knowledge to make sound financial decisions as adults. So they are capable of saving themselves from financial scams and other fraudulent activities and leading a relatively stress-free life.
Now as a parent, you may wonder, what can I do to ensure my child’s financial literacy?
First, have open conversations with your kids about your family’s financial scenario.
Providing kids with a realistic picture of what your finances are like helps create a sense of understanding about how much money is needed to run a household and that nothing comes easy. They will begin to appreciate the effort needed to provide a good lifestyle and might even be happy to pitch in. It might prove to be a bonding exercise and help reduce parenting stress when saying no to expensive gifts or holidays.
Second, encourage them to do chores or pick up jobs that earn them extra pocket money.
Not only does a side hustle bring in the extra money but also helps create a sense of responsibility and accountability.
Third, if they borrow some amount, they must repay it.
A loan is a loan. It must be repaid. Play the banker when it comes to borrowing and recovering the amount borrowed. This will prepare them for what is to come in the future in case they want to take out a loan.
Why wait? Start them young with Good Good Piggy. Assign your kids missions, help them learn good habits and all this while earning rewards and creating a sound foundation for future financial decisions.
